The worst-kept secret in the City was finally disclosed yesterday when Reuters, the news and financial information group, announced that Niall FitzGerald would be its new chairman.

Mr FitzGerald had been expected to take the post following his decision last month to stand down as the chairman of food group Unilever a year earlier than expected.

Reuters said Mr FitzGerald, a Europhile who counts Manchester United and Irish rugby among his passions, would take up the post on October 1.

He will replace Sir Christopher Hogg, who is retiring after 19 years. Sir Christopher, also chairman of drugs company GlaxoSmithKline, announced his intention to step down last April after a stormy annual meeting at which only 45% of Reuters' investors voted for its executive pay scheme.

Chief executive Tom Glocer said he was delighted Sir Christopher was being succeeded by a "business leader of such standing", and everybody at Reuters was "excited by Niall's appointment".

The announcement comes as Reuters seeks a return to growth. Under Mr Glocer it has axed thousands of jobs and overhauled its product range in an effort to see off competition from Bloomberg, founded by New York mayor Michael Bloomberg, and Canadian firm Thomson Financial.

Although profits have improved, Mr Glocer still has to convince the City that he can improve long-term revenues. Analysts said the appointment of Mr FitzGerald was unlikely to herald a change in strategy.